North East Industrial and Investment Promotion Policy (NEIIP)
- The Department of Industrial Policy & Promotion (DIPP) has revised North East Industrial and Investment Promotion Policy (NEIIP), 2007.
- The revision of policy stipulates mandatory disbursal of subsidies payable to all industrial units in northeast through Direct Benefit Transfer (DBT) mechanism by Chief Controller of Accounts (Industry).
- Prime Minister Narendra Modi inaugurated India’s first international exchange India INX at the International Financial Service Centre (IFSC) of GIFT (Gujarat International Financial Tech) City Gandhinagar, Gujarat.
- India INX is a wholly-owned subsidiary of the Bombay Stock Exchange (BSE). It will enable Indian firms to compete on equal footing with offshore firms.
- It will facilitate international investors and NRIs to trade from anywhere in the world.
- It will provide benefits in terms of waiver of security transaction tax, commodity transaction tax, dividend distribution tax, long term capital gain tax and income tax.
Modified Special Incentive Package Scheme (M-SIPS)
- The Union Cabinet in 2012 approved the M-SIPS to provide a special incentive package to promote large scale manufacturing in the Electronics System Design and Manufacturing (ESDM) sector to boost domestic electronic product manufacturing in the country.
- The scheme provides subsidy for capital expenditure. The subsidy is 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs.
- ESDM products including telecom, IT hardware, consumer electronics, medical electronics, automotive electronics, solar photovoltaic, LEDs, LCDs, strategic electronics, avionics, industrial electronics, nano-electronics, semiconductor chips and chip components, other electronic components and EMS.
- The incentives are provided on reimbursement basis (means first investment has to be made by the unit to claim the subsidy).
- Amendments in the Modified Special Incentive Package Scheme (M-SIPS) for electronics manufacturing.
- These modifications will further incentivize investments in electronic sector and move towards Union Government’s goal of ‘Net Zero imports’ in electronics by 2020. o Besides expediting investments into the Electronics System Design and
- Manufacturing (ESDM) sector in India, the amendments in M-SIPS are expected to create employment opportunities and reduce dependence on imports. o The Policy covers all States and Districts and provides them an opportunity to attract investments in electronics manufacturing.
Electronics Development Fund (EDF)
|The Union Government is targeting an investment of about Rs. 2,200 crore in start- ups working on new technologies in the electronic sector under the Electronics Development Fund (EDF) by 2019.|
- This investment aims at creating an eco-system to make India a global hub for electronics manufacturing.
- EDF is the mother fund or fund of funds that will contribute to various funds for those who invest the money in companies for creation of intellectual property rights (IPR) in the field of electronics and IT.
Amended Technology Upgradation Fund Scheme (ATUFS)
|The Cabinet Committee on Economic Affairs (CCEA) has approved introduction of Amended Technology Upgradation Fund Scheme (ATUFS) for technology upgradation of the textiles industry.|
- The ATUFS replaces existing Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS) to give a boost to textile sector under Make in India campaign.
- ATUFS targets:
Employment generation (including women) and global export by
- encouraging garment and apparel industry.
- Promote Technical Textiles which is a sunrise sector for export and employment creation.
- Improvement in quality and productivity by promoting conversion of
- existing looms to better technology looms.
- Encourage better quality in textile processing industry and keep check on
- import of fabrics by the garment sector.
Trade Infrastructure for Export Scheme (TIES)
|The Union Ministry of Commerce & Industry has launched Trade Infrastructure for Export Scheme for developing export linked infrastructure in states with a view to promoting outbound shipments.|
- TIES seek to bridge the critical infrastructure gap and provide forward and backward linkages to units engaged in trade activities.
- It would focus on projects like customs checkpoints, last mile connectivity, border haats and integrated check posts.
- An inter-ministerial empowered committee will sanction and monitor the projects. It will be headed by the commerce secretary.
- All central and state agencies including Commodities Boards, Export Promotion Councils, SEZ authorities and Apex Trade Bodies recognised under EXIM policy of Central Government are eligible for financial support.
|The Union Ministry of Agriculture has launched Mission Fingerling, a programme to enable holistic development and management of fisheries sector in India.|
- The mission aims to achieve the target to enhance fisheries production from 10.79 mmt (2014-15) to 15 mmt by 2020-21 under the Blue Revolution.
- Government has identified 20 States based on their potential and other relevant factors to strengthen the Fish Fingerling production and Fish Seed infrastructure in the country.
India’s largest Floating Solar PV Plant
- State-run NTPC (National Thermal Power Corporation Limited) has installed India’s largest floating solar photovoltaic (PV) plant at Rajiv Gandhi Combined Cycle Power Plant (RGCCPP) at Kayamkulam in Kerala.
- The 100 kWp (kilowatt peak) floating solar PV plant has been indigenously developed as a part of Union Government flagship ‘Make In India’ initiative.
- Floating solar PV systems are fast emerging as an alternative to conventional source of Energy.
Bharat QR code
|The Union Government has launched Bharat QR code, a quick response (QR) code to enable digital payments without card swiping machines.|
- It is world’s first interoperable payment acceptance solution launched by Indian Government to move towards less-cash economy.
- Bharat QR code has been developed by jointly by National Payments Corporation of India (NPCI), Visa, MasterCard and American Express under instructions from Reserve Bank of India (RBI).
- It works as common interface for the MasterCard/Visa/RuPay platforms and also facilitate acceptance of Aadhaar-enabled payments and Unified Payments Interface (UPI).
QR code -UPSC IAS Economy Current Affairs 2017 Pdf Download from June 2016 to April 2017
- QR code (Quick Response code) is a two-dimensional (matrix) machine- readable bar code made up of black and white square.
- This code can be read by the camera of a smartphone.
- It is used for storing URLs or other information that link directly to text, emails websites phone numbers.
- It is capable of 360 degrees (omni- directional), high speed reading.
- QR Code can store up to 7089 digits as compared to conventional bar codes which can store max 20 digits. It encodes same amount of data in one-tenth the space of a traditional bar code.
- It carries information both horizontally and vertically.
- It has error correction capability and data stored in it can be restored even if it is partially damaged or dirty.
Revenue Insurance Scheme for Plantation Crops (RISPC)
|The Union Ministry of Commerce and Industry has launched pilot Revenue Insurance Scheme for Plantation Crops (RISPC).|
- RISPC is the improved form of the Price Stabilization Fund (PSF) Scheme, 2003 which was closed in 2013.
- It was launched for protecting growers of plantation crops from twin risks of yield loss due to pest attacks, adverse weather parameters etc. and income loss caused by fall in domestic and international prices.
- It shall be covering tea, coffee, rubber, cardamom and tobacco plantations and shall be implemented by the commodity boards.
• It will be implemented on a pilot basis for two years i.e. till 2018 in eight districts in West Bengal,
Google tax / Equalisation Levy
- It will apply to payments for online advertisements made by Indian business entities to non-residents (such as Google, Yahoo, Twitter, Facebook) where the aggregate payment in a financial year to a non-resident exceeds Rs 1 lakh.
- Only B2B transactions attract this levy.
- India became the first country to impose equalisation levy, popularly being called Google Tax
Minimum Support Price (MSP)
- Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
- Announced by the Government of India at the beginning of the sowing season for certain crops.
- The Cabinet Committee on Economic Affairs (CCEA), Government of India, determines the MSP based on the recommendations of the Commission for Agricultural Cost and Prices (CACP).
- 26 commodities are currently covered.
- Procurement of agricultural crops is made by the Food Corporation of India (FCI), state agencies and cooperatives.
- • A counterpart of the MSP is the Market Intervention Scheme (MIS), under which the state government procures perishable commodities like vegetable items.
Merchant Discount Rate
- Merchant Discount Rate or MDR is a charge that merchants pay every time a debit card or credit card is swiped at their end for a transaction by a customer.
- This charge, typically 1% of the transaction, goes to the company that has installed the Point of Sale (PoS) machine, the network provider such as MasterCard, Visa or RuPay, and the card-issuing bank.
- A fat tax is a tax or surcharge that is placed upon fattening food and beverages.
- Kerala is the first state in India to introduce a 14.5% “fat tax” on pizzas, burgers, sandwiches and tacos sold through branded outlets.
- This is in sync with the World Health Organization’s advocacy of using fiscal tools to promote healthy eating.
General Anti Avoidance Rules
|General Anti-Avoidance Rule (GAAR) is an anti-tax avoidance regulation to check tax evasion and avoidance.|
GAAR seeks to prevent companies from routing transactions through other countries to avoid taxes.
- GAAR is set of rules under the Income Tax Act (under the proposed Direct Tax Code).
- It contains provision allowing the government to retroactively tax overseas deals involving local assets.
- It empowers officials to deny the tax benefits on transactions or arrangements which do not have any commercial substance or consideration other than achieving tax benefit.
- It could also be used by the government to target participatory notes (P-Notes).
- GAAR seeks to give the IT department powers to scrutinize transactions structured in such a way as to deliberately avoid paying tax in India.
- It will not be invoked in cases where investments are routed through tax treaties that have a sufficient limitation of benefit (LOB) clause to address tax avoidance.
- GAAR will not apply on foreign portfolio investor if its jurisdiction is based on non- tax commercial considerations and the main purpose is not to obtain tax benefits.
- The Parthasarathy Shome panel was formed in 2012, for drawing up the final guidelines on GAAR and mainly to bring about tax clarity and address the concerns of foreign investors.
- India will be the 17th nation in the world to have laws that aim to close tax loopholes.
- At present, GAAR is in force in nations like Australia, Singapore, China and the UK.
Non-bank financial companies (NBFCs)
|Non-bank financial companies (NBFCs) are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license.|
- The Reserve Bank of India is entrusted with the responsibility of regulating and supervising the Non-Banking Financial Companies by virtue of powers vested under Reserve Bank of India Act, 1934.
- NBFC cannot accept demand deposits (they can accept term deposits).
- NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.
- Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.
- The NBFCs do the business of loans and advances, acquisition of shares, stock, bonds, debentures, securities issued by Government.
- A Non Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 of India.
Wholesale Price Index (WPI)
- In general, reflects the rate of change in prices of all goods and services in an economy over a period of time.
- In India, headline inflation is measured through the WPI – which consists of 676 commodities (services are not included in WPI in India).
- It is measured on year-on-year basis i.e., rate of change in price level in a given month Vis a Vis corresponding month of last year. This is also known as point to point inflation.
- In India, there are three main components in WPI –Primary Articles (weight: 20.12%),
- Fuel & Power (weight: 14.91%) and o Manufactured Products (weight: 64.97).
- This includes “Food Articles” in the Primary Articles (14.34%) and “Food Products” in the Manufactured Products category (9.97%).
- (WPI) is computed by the Office of the Economic Adviser in Ministry of commerce & Industry, Government of India. WPI is released monthly.
- Current WPI Base year is 2004-05.
- WPI covers all goods including intermediate goods transacted in the economy.
- In Strategic disinvestment the management control and a significant proportion of a PSU’s share goes to a private sector strategic partner.
- Strategic disinvestment of a PSU is different from the ordinary disinvestment in which management of PSU is retained with Government.
- For example, in a PSU, where the government holding 51%, and out of this, sale of 25% to the strategic partner while the government holding 26% share also is a case of strategic sale. Here, the remaining shares (49%) will be dispersed among the public.
Index of Industrial Production (IIP)
- The Index of Industrial Production (IIP) is an index for India which details out the growth of various sectors in an economy
- The IIP is compiled and published every month by Central Statistics Office (CSO) of the Union Ministry of Statistics and Programme Implementation.
- It covers 682 items comprising Manufacturing (620 items), Mining (61 items) & Electricity (1 item).